The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-07-17
DEALING In FUTURES.
THEORY AND PRACTICE OF OP.
TON TRADING.
A System Which Developed With the
Growing Requirements Of
Commerce.

not been satisfactorily determined in
the minds Of a large number of very
respectable people.
There are today hundreds Of intel
ligent merchants, in this city and
elsewhere, to whom proposition to
engage in specializing" would be re-
garded as greater insult than would
an offer to start a fully equipped
gambling hell for their exclusive
benefit
This prejudice is founded on a
total misconception OF the original
Office Of eptien trading, and Of the
entirely honorable function il fulflls.
1t is a popular error which Ame and
an enlarged understanding of the
theory OF speculation can alone be ex-
pected to eradicate.
There exists a large class ofprofes-
sionsl people, clergymen and others,
in whose eyes speculation is wholly
vicious, and the various bodies known
as exchanges" boards OF trade"
chambers Of commerce." etc., are
TO these nothing more than powerful
hydra headed monsters OF sin, whose
flaming breath destroys virtue and in
whose shiny track physical ruin and
moral death stalk hardin hand. The
laymeu Of this class thank God that
they earn their bread by honest toll
yea, even though that one yonder
once built bridge that fell with
train load OF fellow beings because
the ironwork was defective; and
though this one put up a house with
paper walls which collapsed, TO the
evident discomfort Of half dozen
inmates whose breath was pounded
out Of their bodies by cruel ava
lanche Of shattered beams, and
though this other one writes books
which corrupt mems minds. Their
several fingers Of scorn never
tbeless poiat to the option gamblers
with an intensity calculated to blast
the objects OF il. II the wealthy
pulpits Of large cities do not resound
with unrestrained censure of stock,
oil or grain gambling" il is not be-
cause the occupants thereof do not
long to hurl the thunderbolts Of their
denunciations upon the heads Of the
gamblers" but il is inexpedient, i'm
polite, TO ALLEVIATE the leading mem
bers Of the Church, the men who
bid highest for pews, whose sub
scriptions are always the largest, aud
who can be depended upon TO open
their purses most literally 10 wipe
out a deficit, TO buy a new organ, or
10 send the pastor to Jericho for his
summer vacation. Your American
minister is as silent on the subject OF
gambling" OF you German is on that
Of beer drinking
The prevalence OF such a prejudice
is to be regretted for more than one
reason. II divides business circles
10 opposing factions, thus gripping
and often destroying valuable inau-
euce al attacks individual credit by
questioning the desirability OF main
tanning business relations with peo-
pie who are inclined to take great
risks; and IL provides rural popula.
tons with fapcied reason for as
senseless a hostility as the world will
probably ever know. The periodic
spasms Of virtuous wrath which con-
vulse the bosom OF the rural legisla.
Tor and prompt him to undertake the
determination Of the whole specula-
tive tribe have their origin in the
widely accepted fallacy that spocula.
tors-city farmers, a. some oil them
arc extraordinarily tx breadstufi
prices. This much being taken for
granted, the steady decline in the
range OF prices year by year, due 10
q variety OF causes, but neces
sarily incident to increased compo.
tition OF wheat growers and lessoned
cost Of production, Is assumed TO be
part OF the conspiracy 10 doirAud the
toiling farmer Of the hard earned
fruits Of his labor. The dead letter
laws, directed alike against railroads,
Spectators and other prima iacie
mAleiact0rs. which litter the statute
books OF 20 many Western States,
which are NO eontempiuously referred
TO by capitalists a. granger laws"
represent the accumulated errors OF
many years; accepted without exam
ination. born Of ignorance, perpetu-
atod by crcduiliiy. Constituents un-
accustomed 20 think for themselves,
give ready Endorsement 10 the views
Of the local dcmAgoRucs whose men
TAI strabismus was their most dis
tinguished quality. These men Of
confused ideas aud warped JUDGMENTS
framed the laws which still arouse
the profound wonder Of the modern
student Violating the simplest
economic principles, the iundament.
a. equities which undcrle all Law,
those impuissAnt onactmcnts are
Simply blind aud unphilosophioal,
unskilled efforts 10 correct apprecia
bic wrongs. Such endcayors repeated
At intervals over a prolonged pc.
Rod, evidently have some basis
OF right so much may be acknowl.
edged; but this germ Of truth should
not be allowed to justify laws which
are inherently unjust An entire
commercial system should not be
condemned because some u its less
vital features are foprchensiblc. II
the cardinal principles on which IL
rests are correct IL should be allowed
10 stand undisturbcd.
The rationale Of grain options.
which may be taken az type OF all
others, oil, provisions, stocks, coffee,
cotton, etc, Is easily understood.
The silent feature Of such tranac.
tons may be stated thus.
The right 10 contract Tor the act.
ual delivery, NJ some future date. of
specific quantities Of standard grade
commodities.
/. IL not exactly plain how such a
right can be attacked. Certainly n
Al exporter oi grain Gao use 100000
bushels Of wheat In March he has
the undeniablo right 20 buy the
grain in February ii he eau Gud any
one 20 sell u 10 him, even though the
seller may not have the grain AZ the
time the contract is made, and oven
though the grain dos not yet exist.
such occupa ions a. milling and OK.
nnFifufg Grain g,ttl 80 A.. -. -